Choosing to rent out a vacation home can offset the expenses you incur. While this is a financially sound idea, there are some considerations to make before doing so. As we take a closer look at the factors you need to be aware of, ensure your home is protected with the right NJ Vacation Home Insurance policy.
Calendar Conflicts
Naturally, you are likely going to want to stay in your vacation home during spring, winter and summer breaks. However, this is a common time for renters to inquire about your home, as well. Investopedia states that an owner who is willing to use the property during off times may have a better chance of renting out the vacation home while being able to collect higher rental fees-as a general rule of thumb, a week of in-season rental is about equal to a month of off-season rental. Weigh your options before saying no to a potential renter!
Hiring a Property Manager
Depending on how often you’ll visit and how far away your vacation home is, you might consider hiring a property manager. They can advertise your property and include all of the information regarding amenities, location, price, and more. However, if you choose to do it by yourself, you can save some money. Bear in mind, however, that maintenance and repairs for the home can be extensive and doing it alone can be overwhelming. Therefore, see what works best for you.
Tax Considerations
If the home is rented out for 14 days or less throughout the year, you don’t have to claim that income. However, any more must be reported to the IRS. Further, if the home is rented out more than you live in it, the rental expenses can be deducted as the home is viewed as a business for a portion of the year.
Rental Income
Choosing the right price is critical for vacation home owners. Consider the comparable properties in the neighborhood with similar amenities to determine a fair price that will generate plenty of interest and great cash flow.
At Provident Protection Plus Insurance Agency, we want to ensure to protection of your valuable investments. Our comprehensive vacation home policy provides you peace of mind and protects all of your assets at competitive rates. For more information, contact us today at (888) 990-0526.